Investment and Quarterly Update

Riverstone Credit Opps. Inc PLC

19 July 2024

 

19 July 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Riverstone Credit Opportunities Income

Investment and Quarterly Update

Riverstone Credit Opportunities Income ("RCOI" or the "Company"), the LSE-listed energy infrastructure and energy-transition credit investor, is pleased to announce a robust portfolio performance for the quarter ended 30 June 2024.

 Unaudited Net Asset Value

As at 30 June 2024, the unaudited net asset value per Ordinary Share, including net revenue for the quarter, was $1.02⁷ ($1.06: 31 March 2024), reflecting stable performance by the unrealised portfolio.

Portfolio Summary and Key Performance Indicators

·    Portfolio of 100% floating rate, short duration, senior secured loans, from investing in companies engaged in driving forward the energy transition

·    40.6%⁷ NAV total return⁵ achieved since IPO in May 2019

·    36.1 cents in dividends paid since inception⁶

Harland & Wolff Update

The most significant move in the Company's NAV in the second quarter came from a reduction in the value of its position in a loan made to Harland & Wolff ("H&W"). The Company and other funds managed by RCOI's investment manager, Riverstone Investment Group LLC, (together with its affiliates "Riverstone") are co-invested in a $115m loan to H&W of which RCOI's contribution is $14.6m. The reduction in value of this loan in the second quarter was taken in consultation with the Company's external valuation provider and reflects the best estimate of the investment manager as to the fair market value of the position. The principal reason for the reduction in value is that, as announced today by H&W, the UK Department for Business and Trade has notified H&W that HM Government will not be proceeding with the provision of export development guarantee or loan facilities that they had long been considering for H&W.

In connection with the notification from the UK Department for Business and Trade that no loan or guarantee facilities will be provided to H&W, the company has quickly expedited discussions with Riverstone, as manager of its sole financial creditors, in order to secure additional debt facilities to support the near-term working capital needs of H&W's business following its recent significant revenue growth. In addition, the Company is engaging Rothschild & Co to explore strategic options for H&W.

The additional funding is expected to be provided solely by credit funds managed by Riverstone and to close in the next few days. The new capital provided is expected to be classified as a super priority position to the existing facility under of which the Company is a lender. As a condition to the financing, the most recent $15 million upsize of the facility completed in February 2024 (in which RCOI did not participate), is also expected to be recharacterised as part of the new super priority facility. As announced by H&W, the increase in debt facilities will be accompanied by a change in personnel of H&W's senior management and the insertion of new  non-executive directors.

RCOI will not participate in the new super priority facility as it has now entered into managed wind-down (and had previously already reached its concentration limit in H&W). The Q2 NAV does not reflect the impact of this new financing as it had not closed as of 30 June 2024.

The Board will continue closely to monitor developments regarding the Company's investment in Harland & Wolff, in particular when considering the appropriate timing for cash returns to Shareholders pursuant to its wind-down strategy. In the meantime, the Company's cash balances are invested in a money market and are yielding a healthy risk-free return.

Furthermore, given that a significant portion of the Company's previously expected earnings for the second quarter was expected to come from a possible H&W refinancing, the Board is evaluating the appropriate level of dividend to pay for the second quarter and will provide further information in due course.

Cumulative Portfolio Summary

Unrealised Portfolio[1]

Investment Name	Subsector	Commitment Date	Cumulative Committed Capital ($mm)	Cumulative Invested Capital ($mm)	Gross Realised Capital ($mm)1	Gross Unrealised Value ($mm)	Gross Realised Capital & Unrealised Value ($mm)	% of Par as of 30 June 20242	% of Par as of 31 Mar 20242	30 June 2024 Gross MOIC	30 June 2024 Net MOIC
Caliber Midstream3	Infrastructure	Aug-19	4.0	4.0	0.6	0.4	1.0	34.46%	33.52%	0.26x	0.07x
Imperium3NY LLC	Energy Transition	Apr-21	6.8	5.4	6.7	0.0	6.7	0.014	0.014	1.25x	1.12x
Blackbuck Resources LLC	Infrastructure	Jun-21	11.5	11.0	6.4	9.2	15.7	99.05%	98.87%	1.42x	1.30x
Harland & Wolff Group Holdings PLC	Infrastructure Services	Mar-22	14.6	14.6	2.0	16.0	18.0	15.53	18.604	1.24x	1.15x
Seawolf Water Resources	Services	Sept-22	9.0	9.0	1.3	11.9	13.2	11.854	12.09	1.46x	1.39x
Hoover Circular Solutions	Infrastructure Services	Nov-22	13.7	13.7	2.5	14.5	17.0	100.17%	98.59%	1.24x	1.17x
Max Midstream	Infrastructure	Dec-22	5.0	5.0	1.1	5.1	6.3	102.60%	102.09%	1.25x	1.19x
Streamline Innovations Inc.	Infrastructure Services	Jun-23	9.9	5.4	0.9	5.6	6.5	100.54%	99.29%	1.21x	1.16x
			$74.5	$68.1	$21.5	$62.7	$84.4			1.24x	1.15x

Realised Portfolio

Investment Name	Subsector	Commitment Date	Realisation Date	Cumulative Committed Capital ($mm)	Cumulative Invested Capital ($mm)	Gross Realised Capital ($mm)1	30 Jun 2024 Gross MOIC	30 Jun 2024 Net MOIC
Rocky Creek Resources	Exploration & Production	Jun-19	Dec-19	6.0	4.3	4.9	1.15 x	1.13 x
CIG Logistics	Infrastructure Services	Jan-20	Jan-20	8.7	8.7	8.9	1.02 x	1.02 x
Mallard Exploration	Exploration & Production	Nov-19	Apr-20	13.8	6.8	7.7	1.13 x	1.12 x
Market Based	Multiple	Aug-20	Nov-20	13.4	13.4	13.6	1.01 x	1.00 x
Project Yellowstone	Infrastructure	Jun-19	Mar-21	5.8	5.8	7.2	1.23 x	1.16 x
Ascent Energy	Exploration & Production	Jun-19	Jun-21	13.3	13.3	16.1	1.21 x	1.13 x
Pursuit Oil & Gas	Exploration & Production	Jul-19	Jun-21	12.3	12.3	15	1.22 x	1.14 x
U.S. Shipping	Infrastructure Services	Feb-21	Aug-21	6.5	6.5	7.3	1.13 x	1.11 x
Aspen Power Partners	Infrastructure	Dec-20	Oct-21	6.9	3.4	4.3	1.27 x	1.24 x
Project Mariners	Infrastructure Services	Jul-19	Apr-22	13.2	13.2	17.6	1.33 x	1.22 x
Roaring Fork Midstream	Infrastructure	Mar-21	Jun-22	5.9	5.9	6.9	1.16 x	1.11 x
FS Crude, LLC	Infrastructure	Mar-20	Sept-22	13.7	13.7	16.9	1.23 x	1.13 x
EPIC Propane Pipeline, LP	Infrastructure	Dec-19	Sept-22	14.8	14.8	19.6	1.32 x	1.21 x
Circulus Holdings, PBLLC	Infrastructure	Aug-21	Oct-22	12.3	12.3	14.0	1.14 x	1.10 x
Hoover Circular Solutions	Infrastructure Services	Oct-20	Nov-22	15.4	15.4	17.0	1.10 x	1.01 x
Streamline Innovations Inc.	Infrastructure Services	Nov-21	Jun-23	13.8	6.9	8.9	1.29 x	1.22 x
Clean Energy Fuels Corp	Energy Transition	Dec-22	Dec-23	13.9	13.9	15.7	1.14 x	1.10 x
EPIC Propane Pipeline, LP	Infrastructure	Sept -22	Apr-24	13.9	13.9	17.2	1.24x	1.18x
				$203.7	$184.5	$218.7	1.19x	1.12x

The Gross Realised Capital column includes interest, fee income, and principal received. The Gross Unrealised Value column includes the amortization of OID, accrued interest, fees and any unrealised change in the value of the investment.

For Riverstone Credit Opportunities Income Plc:

Adam Weiss

[phone]

J.P. Morgan Cazenove (Corporate Broker)	[phone]
William Simmonds
Jérémie Birnbaum
James Bouverat (Sales)

 

Media Contacts:

Buchanan

Helen Tarbet Henry Wilson Verity Parker

Tel: [phone] Tel: [phone] Tel: [phone] Email: [e-mail]

About Riverstone Credit Opportunities Income Plc:

RCOI lends to companies that build and operate the infrastructure used to generate, transport, store and distribute both renewable and conventional sources of energy, and companies that provide services to that infrastructure. RCOI also lends to companies seeking to facilitate the energy transition by decarbonizing the energy, industrial and agricultural sectors, building sustainable infrastructure and reducing or sequestering carbon emissions. The Company seeks to ensure that its investments are having a positive impact on climate change by structuring each deal as either a green loan or a sustainability-linked loan, documented using industry best practices.

As previously announced, on January 2, Riverstone Holdings LLC, and their affiliate Riverstone Investment Group (collectively, "Riverstone") entered into a sub management agreement for RCOI with Breakwall Capital LP.  Breakwall is an independent asset manager regulated by the SEC as a Registered Investment Advisor. It is owned and operated by the former members of the Riverstone Credit Partners team.

For further details, see https://www.riverstonecoi.com/.

Neither the contents of RCOI's website nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

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1 Gross realised capital is total gross income realised on invested capital.

² Includes fair market value of equity and rights where applicable as a percentage of par.

³ Includes Caliber MFC LLC equity, Caliber Midstream Term Loan & Priming Facility.

⁴ Reflects the total fair market value in millions.

⁵ NAV total return equals cumulative paid dividend cents per share and NAV per share as of 30 June 2024 divided by the opening capital net of share issuance costs as of 28 May 2019.

⁶ Reflects cumulative dividend cents per share declared as of 31 March 2024 and paid as of 30 June 2024.

⁷ Estimated as of 30 June 2024.

 

END